- Learn about Real Yield.
- Know the best protocols to earn Real Yield.
Real Yield refers to the returns that an investor earns from real revenue. The alternatives to real yield could be revenue generated from schemes. These yields do not last long and tend to die out just a few hours or days after the launch of the protocol.
The stand-out point of the Real Yield Protocol is that in it, profit is shared among the yield farmers. This means that the more profitable the protocol, the higher the APR users get. So let’s have a look at some of the profitable real yield protocols of 2023:
Umami Finance
Umami Finance is determined to provide liquidity access and uses a hybrid model to collaborate on regulated and tested compliance methods with trustless DeFi protocols. In this sense, Umami works as a middle layer between capital providers and DeFi protocols. Umami also works closely with the GMX system.
Umami is launching GLP vaults for USDC, Bitcoins, and Ethereum. The APY earned from this would be transferred to depositors.
Mugen Finance
Another real yield protocol is Mugen Finance, which also works on the GMX ecosystem and is built on Arbitrum. MGN is the native token of Muge, which users can get through a bonding curve using USDC. You can simply deposit your USDC into a smart contract and get MGN in return.
Mugen uses Layer Zero technology. Umami, on the other hand, will be using the same technology to enable cross-chain swaps on their platforms.
Leverage Inu Finance
This Meme Finance project provides its users with real yield earned from the profit of protocols. This socially passive real yield trading protocol is powered by a native token called LEVI. So far, Leverage Inu Finance claims to have provided $1300 to 500 members.
This real yield protocol works by acquiring fees from Uniswap LP and then investing them in GLP to earn fees from GMX. 20% of fees are used to leverage trades on various platforms, such as GMX.
Vela Exchange
This decentralized real yield protocol is launching on Arbitrum. Vela Exchange promises to create a perfect Dex system that can mimic CEX, as they offer position management along with the ability to stop losses and take profits. This protocol will support peer-to-peer trading and incorporate risk-managed tools.
Moreover, holders can also receive VLP tokens and a chance to get 50% of the fees generated by the protocol when they provide liquidity on the exchange.
Unipilot
To understand the workings of this real yield protocol, you need to get familiar with the new Uniswap V3 concentrated liquidity programs.
Through concentrated liquidity, users can provide liquidity around a certain price that is specified. For example, you can provide liquidity for the ETH-USDC pool in the $1200-$1400 price range. This means that if the price of ETH rises or falls outside of this range, you don’t earn anything. Therefore, Unipilot also offers to manage your liquidity for you.
Conclusion
The above-mentioned were some of the best and most profitable yield protocols in 2023. Although the market and profit offered by them fluctuate and are highly volatile one should consult a financial advisor to understand the risk involved.